Analysts cite less tax selling, safe-haven demand for crypto rally

The cryptocurrency market is experiencing a broad upswing, driven by a decrease in trading for tax purposes and a stronger preference for safe-haven assets amid geopolitical risks, according to market analysis. Markus Thielen, CEO of 10x Research, stated that market sentiment is improving, with both BTC and ETH shifting into an uptrend, CoinDesk reported. He analyzed that following the options expiration at the end of last month, tax-motivated selling has declined, and corporate trading desks are expected to secure liquidity to diversify risk. Separately, Ryan Lee, Chief Analyst at Bitget, interpreted that growing geopolitical risks, such as U.S. actions against Venezuela, are increasing investor demand for safe-haven assets. Lee suggested the crypto market's rise could signal that it is attracting capital from traditional safe-haven markets like gold.